An Organization Is Responsible to Many Different Entities

question 5

Multiple Choice

An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that

• A) interests of the shareholders are not the only interests that matter.
• B) stakeholders are second in importance to the shareholders.
• C) stakeholders and managers inevitably work at cross-purposes.
• D) all stakeholders receive financial rewards.

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Definitions:

Multicultural Organization

An organization that incorporates, respects, and values diverse cultural perspectives and encourages engagement among varied cultural groups.

Homogeneous Organization

An entity or group characterized by uniformity or similarity in its members, culture, or structure.

External-operational Communication

Communication that occurs between an organization and external entities, focusing on operational aspects.

Senior Management

Refers to the highest level of managers within an organization who are responsible for strategic decision making and company direction.